Why Building A Business Information System Is Important?
07 March 2023
Before finding out why a business information system is important, let's first talk about what a business information system is. Business information system is a group of interrelated components that work collectively to carry out input, processing, ouput, storage and control actions in order to convert data into information products. In short, a business information system converts data into information. Then what is the difference between data and information? While data are raw facts with no context, information provides processed data with context and value added after going through several processes such as summarized, organized or analyzed.
You may be wondering how powerful an information is for a business. In an organization, information products are used for forecasting, planning, controlling, coordination, decision making and even for operational activities. From the list above you can how information are used on different levels within a company. Here are some examples of business information system applications in a company:
- Executive information systems used by Executives for making strategic decisions
- Decision support systems used by Senior Managers for decision making
- Management information systems used by Managers for operational efficiency
- Transaction processing systems used by workers for basic reporting
With the constant change and evolution of customer preferences and requirements, the implementation of Information System can benefit a lot in businesses. This is why building a business information system is important.
Better Business Insights
Businesses that seeks to improve and secure a firm grip of the future must embed a well organized Business Information System. IS can assist in analyzing independent processes and enables organized work activities. Therefore, information systems give companies the right to understand how they produces, develops, and sells services or products.
Easy Information Storage
For all organizations, keeping a record of activities is important to help understand the reasons behind every problems and provide effective solutions. Business Information Systems makes it easy to store operational data, revision histories, communication records and documents, whereas storing data manually takes a lot of time and money. Advanced information systems store information in the database which simplifies the data retrieval process.
Simplified Decision Making
Business Information Systems facilitates the decision-making process and simplifies the process of conveying the necessary information and hence help in making better decisions instantly.
Boost Employee Morale
Business Information Systems can be effectively implemented to provide better communication between employers and employees. Information Systems work better because they store documents and files in folders that employees can access and share. This ensures to oversee the flow of information between management and lower-level employees. It also allows front-line employees to be part of the decision-making process and thus feel motivated and committed to performing the task.
From the Lecture of Business Information System for the International Business Management Department students of Universitas Kristen Petra on November 5th, 2020 brought by our Managing Director, Donny Susanto Witono.